Tories spend more than they earn after donations plummet after Boris Johnson

Representatives of the Conservative Party acknowledged that in the leadership election after the ouster of Mr. Johnson, «understandably there was a break in donor assistance»; Photo: Stéphane Rousseau/PA

Conservatives spent £2.4m more than they earned last year as donations plummeted after Boris Johnson was ousted as prime minister.

Reports released by the Electoral Commission showed that the amount received by the party from philanthropists fell by £3.6 million compared to 2021.

Loss of revenue pushed the Tories into a loss and allowed the Labor Party to open a huge £ Funding was $16.5 million ahead of the next election.

Conservative officials acknowledged that the «turbulent year» had severely damaged their finances, but insisted that donors were now returning to the party.

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Official Tory records showed the party spent just under £33.1m last year, despite only managing £30.7m in revenue. This is compared to a small operating profit of £320,000 recorded in 2021, when the company spent slightly less, filling its coffers with £31.7 million.

Records show that the main reason for the improvement was the decline in donations, which fell from nearly £21.8m the year before to just £18.1m in 2022.

Restrained struggle

Mr Johnson was removed from number 10 by his own MPs last July and left office in September after a tense leadership struggle. Liz Truss won.

But she only lasted six weeks in the position before being forced out by the mini-budget fiasco, which resulted in Rishi Sunak taking her place.

The Tory Treasurers said that the uncertainty caused by the constant changes in the top has led to a «delay in the postponement of major donor commitments to 2023.»

«This leadership election, understandably, resulted in a break in donor donations while our supporters watched and waited for the outcome of events,” they wrote.

Conservative officials said philanthropists have since returned under Mr Sunak and the party has received record donations in the first three months of this year. a real estate company that has donated £2 million.

However, membership fee revenue continues to decline, falling slightly from £1.99 million in 2021 to just £1.97 million last year.

This year the membership fee has been increased from £25 to £39 for newcomers, although existing members currently continue to enjoy the old rate.

The Tories do not publish how many members they have. but said some 170,000 people were eligible to vote in the 2022 leadership election.

A good year for Labour's finances

Meanwhile, figures show that Labor Party membership continues to fall under Sir Keir Starmer, despite that the party is having a good year. for your finances.

Its rank and file ranks have fallen by almost 25,000 in a year to 407,445 from a peak of 532,046 in 2019 under former leader Jeremy Corbyn.

Momentum, the left-wing campaign group that supported Mr Corbyn's leadership, said about the decline in membership was «sad and alarming.»

A spokesman added: «When Keir Starmer ran for leader, he celebrated mass membership in the Labor Party and promised to develop a party based on the people, created after 2015.

«However, he has since turned the Labor Party back to corporate donors and interests, rejecting members' and unions' demands for popular, urgent policies such as public ownership, while at the same time undermining their rights by stitching parliamentary elections for the loyalists.

“Britain is already a party funded by a few and serving a few – the Tories. We need a Labor Party, funded and run by the many, that is true to its trade union roots and its founding mission.”

Despite declining membership, the Labor Party has achieved one of the highest income levels outside of an election year, which has helped to a sizeable profit of £2.7m.

The party earned £47.2m in 2022, including almost £16m from membership fees and another £10.5m from donations.

The company managed to turn things around after posting a loss of £5.2 million in 2021, mainly through efficiency savings, including a £6 million reduction in staff. .

Revenues from fundraising dinners have also grown more than thirty-fold, from £10,000 two years ago to £323,000 in 2022.

«Power for Power»

A Labor Party spokesman said: «Thanks to the leadership of Keir Starmer, the Labor Party achieved significant financial growth during 2022 and our finances have grown stronger and stronger this year as we set ourselves five goals to transform Britain.»

< p>«The Labor Party is a changed party that is serious about getting into government and building a better Britain.»

Meanwhile, the SNP fell to over £800,000 in losses after donations and membership plummeted amid a police investigation into her finances.

'Ominous' reports showed the party ran a deficit of just over £804,000 in 2022 — a record deficit for a year without parliamentary elections.

They report that membership has plummeted by nearly 30 per cent in just over 18 months, donations have almost halved in just a year, and subscription fees have dropped nine percent. cent in 2022.

SNP sources said Humza Yousaf had inherited a «nail bed» from Nicola Sturgeon and the drop in income and membership was «ominous but recoverable.» But insiders also fear that the ongoing police investigation could hit the party's coffers further.

These reports were the first released since the arrest of Ms Sturgeon, her husband Peter Murrell, a former party leader, and Colin Beatty, ex-treasurer.

A luxurious motor home was seized near the home of Mr. Murrell's mother. All three were released without charge pending further investigation, and Ms Sturgeon pleaded not guilty.